FTP proposes new institutions to boost global trade

New Delhi: The new Foreign Trade Policy unveiled on Wednesday proposed setting up of a host of institutions, including Trade Council and National Committee on Trade Facilitation, to improve India's share in global trade and implement of WTO obligations.

The country aims at increasing its share in world exports from 2 per cent to 3.5 per cent by 2020.

Pursuant to the WTO agreement on trade facilitation, the policy has proposed setting up National Committee on Trade Facilitation. That pact is aimed at easing customs procedure to reduce transactions cost for traders.

The policy said several initiatives are under way for the simplification of procedures and digitization of various processes involved in trade transactions.

Steps are being taken by various ministries and departments to simplify administrative procedures and reduce transaction costs based on the recommendations of two task forces constituted by the Directorate General of Foreign Trade.

The implementation of these recommendations is being actively pursued, the policy said.

A National Committee on Trade Facilitation is being constituted for domestic coordination and implementation of the TFA, he said.

The Secretary also said an important consideration while framing the policy was aligning FTP with both India's interests as well its obligations and commitments under various WTO agreements has

In the ongoing Doha Round of trade negotiations, he said, India will continue to work towards fulfilling its objectives and to work with like-minded members to remove any asymmetries in the multilateral trade rules which place a developing country at a disadvantage, such as the rules relating to public stock-holding for food security purposes.

"The current WTO rules as well as those under negotiation envisage the eventual phasing out of export subsidies. This is a pointer to the direction that export promotion efforts will have to take in future, i.e. towards more fundamental systemic measures rather than incentives and subsidies alone," he said.

He also said that specific measures will be taken to facilitate the entry of new entrepreneurs and manufacturers in global trade through extensive training programmes.

"The Niryat Bandhu scheme will be revamped to achieve these objectives and also further dovetailed with the ongoing outreach programmes," Kher said, adding capacity development efforts will focus on export promotion councils and commercial missions.